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INFO PRIORITY HONG KONG, BTC HONG KONG, PEKING, ASEAN POSTS, DTI, INFO PRIORITY WELLINGTON

VISIT OF GOVERNOR OF HONG KONG TO SINGAPORE : 18/19 NOVEMBER

SUMMARY

1. A TIGHTLY PACKED AND SUCCESSFUL VISIT. SINGAPORE LEADERS RESPONDED WITH CONSIDERABLE WARMTH TO SUGGESTIONS FOR INCREASED COOPERATION AND MORE STRUCTURED CONTACTS. SINGAPORE EXPRESSED FIRM SUPPORT AND WILLINGNESS TO HELP IN ANY WAY IT COULD TO BUILD UP AND REINFORCE CONFIDENCE IN HONG KONG'S FUTURE AND STRESSED ITS WISH TO

INVEST MEANINGFULLY.

DETAIL

2.

THE GOVERNOR HAD SEPARATE TALKS (RECORDS TO BE CIRCULATED BY PRIVATE SECRETARY) WITH PRIME MINISTER GOH CHOK TONG, SENIOR MINISTER LEE KUAN YEW, DEPUTY PRIME MINISTER BG LEE AND SECOND MINISTER FOR FOREIGN AFFAIRS BG YEO, ALL OF WHOM ALSO ATTENDED A PRIVATE POOLSIDE DINNER AT THE ISTANA HOSTED BY THE PRIME MINISTER.

HOSTED BY THE PRIME MINISTER. I GAVE A LUNCH PRIMARILY FOR REPRESENTATIVES OF COMPANIES AND BANKS WITH HONG KONG INTERESTS. THE GOVERRNOR ADDRESSED AN ACADEMIC, MEDIA AND BUSINESS AUDIENCE ON HONG KONG TO 1997 AND BEYOND'', MET SENIOR PRESS EDITORS AND GAVE AN INTERVIEW TO SBC. PRESS COVERAGE WAS FAVOURABLE.

3.

·

THE PURPOSE OF THE VISIT, IN THE GOVERNOR'S WORDS WAS 'TO SET THE SEAL' ON EFFORTS TO IMPROVE CONTACTS, COOPERATION AND CONSULTATION. SINGAPORE MINISTERS RESPONDED WARMLY. LEE KUAN YEW STATED BLUNTLY THAT SINGAPORE HAD DONE ITS CALCULATIONS CAREFULLY AND HAD COME TO THE UNANIMOUS CONCLUSION THAT ''HONG KONG WAS GOOD FOR

THERE MIGHT BE COMPETITION BUT IT WOULD NOT BE INIMICAL TO EITHER, A PROSPEROUS HONG KONG WOULD BE OF IMMENSE VALUE TO SINGAPORE'S ECONOMIC AND COMMERCIAL INTERESTS IN CHINA AND THEY HAD SO TOLD THE CHINESE. SINGAPORE WAS GLAD TO PROVIDE PSYCHOLOGICAL SUPPORT, FRIENDLY ADVICE (AND A BOLT-HOLE IF NEC SSARY) AND TO PARTIC PATE THROUGH INVESTMENT IN HONG KONG'S DE.ELOPMENT EG LEE KUAN YEW AS ED ABOUT POSSIBLE FUTURE PARTICIPATION IN CATHAY PACIFIC AIRWAYS AND THE HONG KONG AIRPORT AUTHORITY.

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4. OTHER MINISTERS ECHOED THIS THEME.

THEY EXPRESSED KEENNESS TO

BUILD UP PERSONAL RELATIONSHIPS BETWEEN THE ADMINISTRATIONS AND TO DEVELOP HABITS OF CONSULTATION, ESPECIALLY ON ISSUES SUCH AS APEC AND THE GATT, WHERE THEIR POSITIONS WERE CLOSE. LEE KUAN YEW LOOKED FURTHER AHEAD TO DEVELOPING LINKS WITH THE NEXT GENERATION OF LEADERS WHO WOULD STRADDLE 1997 AND WHO COULD BE MADE TO SEE THE USEFULNESS * OF SINGAPORE'S SUPPORTING ROLE AND INDEED ITS POSSIBLE BUFFER ROLE ''TAILOR-MADE FOR US, VIS-A-VIS TAIWAN, CHINA AND HONG KONG''.

5. THE TALKS COVERED ALSO PROSPECTS FOR THE SUCCESSION IN CHINA: ECONOMIC DEVELOPMENTS IN EACH COUNTRY AND REGION AND SHARED PROBLEMS SUCH AS DEPENDENCE ON FOREIGN LABOUR, WITH COMPARISONS OF SINGAPORE'S GROWTH TRIANGLE WITH HONG KONG'S ROLE IN SHENZHEN AND GUANDONG.

6.

THE GOVERNOR EXPRESSED GRATITUDE FOR SINGAPORE'S HELP IN ASSISTING HONG KONG'S ENTRY INTO APEC. BOTH BG LEE AND BG YEO, WHO WERE IN SEOUL, SAID THAT THE MEETING HAD GONE SMOOTHLY BUT THEY NOTED THE NEED FOR PUTTING SOME REAL CONTENT INTO THE DIALOGUE. BG YEO COMMENTED ON THE WAY IN WHICH THE THREE CHINAS HAD FRATERNISED WHEN OUT OF THE PUBLIC EYE, DISPLAYING A CONSIDERABLE SENSE OF KINSHIP. THE GOVERNOR APPEALED FOR PROGRESS ON HONG KONG'S STALLED EFFORTS WITH SINGAPORE TO SEPARATE-OUT THE AIR SERVICES AGREEMENT AND SEEMED TO MEET A READY RESPONSE.

7.

ON VIETNAMESE BOAT PEOPLE, THE GOVERNOR EXPLAINED THE SITUATION TO BOTH THE PRIME MINISTER AND GEORGE YEO, THE LATTER CAREFULLEH DID NOT RESPOND TO SUGGESTIONS THAT IT WOULD HELP IF ASEAN COUNTRIES WERE TO DEVISE WAYS TO RETURN THEIR OWN REFUGEES AS PART OF A GENERAL

SCHEME.

8. BG LEE AND THE GOVERNOR AGREED TO LOOK INTO THE POSSIBILITY OF INVOLVING HONG KONG IN SOME WAY IN SINGAPORE'S MINISTERIAL-LED BUSINESS PROMOTION IN LONDON ON 17 AND 18 FEBRUARY 1992 (MY OTTERS 129 AND 138 NOT TO ALL), PRESENTING BOTH MARKETS AS POINTS OF ACCESS FOR BRITISH BUSINESS TO THE PACIFIC RIM. THE CHAIRMAN OF SINGAPORE'S ECONOMIC DEVELOPMENT BOARD, PHILIP YEO, IS BEING ASKED TO DISCUSS WITH VICTOR FANG OF HONG KONG'S TDC WHEN IN HONG KONG IN THE NEXT FEW

DAYS.

COMMENT

9. THE GOVERNOR WAS WELL PLEASED WITH SINGAPORE'S RESPONSE TO HIS VISIT. SINGAPORE'S SELF-INTERESTED KEENNESS TO ENSURE ITS OWN FUTURE ROLE IN THE CHINESE MARKET, AS A SMALL, NON-THREATENING,

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MANDARIN-SPEAKING AND SUCCESSFUL PROVIDER OF SERVICES, SEEMS A GOOD BASIS FOR MUTUALLY BENEFICIAL COOPERATION WITH HONG KONG. SINGAPORE SEES HONG KONG'S CONTINUING WELL-BEING AS A BELL-WEATHER OF CHINA'S INVOLVEMENT IN THE WORLD ECONOMY AND WISHES TO HELP HONG KONG REMAIN A GOING AND GROWING CONCERN. BRITISH BUSINESSMEN MAY WELL FIND THIS DEVELOPING PARTNERSHIP OF USE IN EFFECTING ENTRY TO THE WORLD'S

FASTEST GROWING REGION.

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